Distortions built into the global economy threaten long-term stability LONDON, 2005 — The global economy in its present form is not only full of and forced to deal with problematic distortions; it has come to depend perilously on the inflationary effect of certain miscalculations and manipulations. Assumptions built into weak threads in the economic web … Continue reading Economy of Errors: How Abundance May Bring Scarcity
Is capitalism legalized greed or an organic model of resource allocation?
Capitalism is “survival of the fittest”… capitalism is rooted in the idea of merit; everyone should be compensated according to his or her contribution (to the common good?)… capitalism is about the movement of capital; the more it moves, the richer everyone gets… capitalism is an upgraded feudalism, where the capitalist is an overseer of an abstract terrain made up of investments, not of arable lands… capitalism is democracy; the free spirit of an open society requires capitalism to support the liberties of individual citizens, and protect against government overreach… capitalism is virtue… or, capitalism is the absence of virtue…
These are just a few commonly held ideas, not all compatible with one another or with reality as we know it. Depending on point of view, we find ourselves favoring or opposing some aspect of something we call capitalism, with sometimes radical swings in the underlying reasoning of our political philosophy — we being Americans, generally. And across the world, the same questions come up time and again: one nation’s democratic marketplace, rising tide that lifts all boats, is seen from a poorer nation as an upgraded feudalism, a new age of empire.
America’s banks have, over the last decade, entered into a dangerous fictional world of projected automatic wealth in which they expect that all payments they might receive will without fail materialize, regardless of circumstance. They treat the human beings with whom they have major financial relationships as if they were nothing more than endless fonts … Continue reading The Fiction of Automatic Wealth is Bankrupting the U.S.
Property pricing boom is putting pressure on entire world economy LONDON — In the summer of 2005, the Economist magazine led with a story entitled “After the Fall”. The article discussed in detail the problems inherent in what appears to be the most expansive boom real estate has seen since records began, and of all markets … Continue reading A Bubble too Far